Tangerine Mortgage Rates for Canadians in 2021

Tangerine mortgage rates vs other mortgage rates

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Tangerine Mortgage Rate Rating: 4.7/5

As a Canadian first-time home buyer, you can’t afford to shun a competitive mortgage rate at your disposal.

With a fixed-term mortgage interest rate, you can have peace of mind knowing that you don’t have to worry about the sudden rise of mortgage interest rates.

Therefore, whether you’re looking to refinance or renew your mortgage contract, a competitive mortgage rate is also your ideal option.

Here I provide you with an unbiased review of one of the household names when it comes to mortgages in Canada. This is no other than Tangerine Bank.

Furthermore, with varying interest low-interest rates, and up to 1.47% Annual Percentage Rate (APR), Tangerine mortgage rates are your saving grace.

At the end of this Tangerine mortgage rate review, you should be able to make an informed decision on whether to go with a Tangerine mortgage or other mortgages.

Let’s get started.

Table of Contents

Tangerine Mortgage Overview

Tangerine mortgage rates are the product of Tangerine Bank that which established as ING Direct Canada in 1997.

Progressively, it renamed Tangerine in 2012 when it was acquired by Scotiabank (one of the “Big Five” banks in Canada)

Today, Tangerine operates independently as a complete single subsidiary.

Tangerine Bank is a digital bank dedicated to simplifying Canadians’ daily banking.

Furthermore, it is one of Canada’s largest digital banks, with more than 2 million customers and about $40 billion in net assets.

Tangerine Bank provides flexible, innovative, accessible and competitive everyday banking products and services to its clients. This includes:

  • Mortgages
  • Lending Products
  • Savings Accounts
  • Investment funds
  • GICs
  • Zero-fee Daily Chequing
  • Credit Cards
  • RSPs
  • TFSAs

Notably, this review is focused on Tangerine mortgages. As you continue reading, you will understand what this product entails.

Let’s move on!

About Tangerine Bank

Tangerine Bank was established in 1997 as ING Direct Canada. Subsequently, it was rebranded to Tangerine when acquired by in 2012. 

Unlike traditional banks, Tangerine Bank doesn’t have physical branches; it’s an online-based bank that can be accessed anywhere and anytime.

Tangerine Bank also operates through mobile in its supported locations and contact centers.

Borrowers are assigned a dedicated Mortgage Account Manager that will support them throughout the mortgage process.

Is Tangerine Bank Safe?

Yes, as of the time of writing this review, Tangerine mortgage is safe.

As a member of the Canadian Deposit Insurance Corporation (CDIC), up to $100,000 protection is provided for may Tangerine account principal and interest.

Also, Tangerine Bank is a member of the Association MasterCard® International, Interac®, Maestro International and the Canadian Payments Association.

Moreover, given the stringent regulations and security requirements for brands such as Interac and Maestro…

You can rest assured that your money is in safe hands with Tangerine Bank.

What is Tangerine Mortgage?

The Tangerine mortgage is one of the top financial products offered by Tangerine Bank, with varying low mortgage interest rates in Canada.

Against the high mortgage interest rates, high fees and charges of the big banks, Tangerine mortgage rates aim to provide a cost-effective alternative to Canadians.

Consequently, more than 2 million Canadians see Tangerine mortgage interest rates as their best choice compared to traditional banks in the country.

Subsequently, you will learn more about why Tangerine mortgage rates are more popular than other mortgage interest rates in Canada.

Key Features of Tangerine Mortgage

Here are 5 key features of Tangerine Mortgage:

1. Great Rate

Tangerine mortgage comes with great interest rates with 120 days guaranteed. This is one of the few offers you can find elsewhere.

2. Dedicated Support

Tangerine provides its clients with personalized Mortgage Account Managers to help them throughout the mortgage process.

3. Flexible Repayment Options

Annually, you can deposit up to 25% lump sum prepayments of the amount of your main mortgage. You can also deposit up to 25%  mortgage payments of your main payment.

4. Portability

If you want to move, you are free to do so without any penalty on your existing mortgage amount, interest rate, and term.

5. Mortgage Calculators

Tangerine’s mortgage payment calculator allows you to estimate your monthly payments according to a variety of different mortgage interest rates and conditions.

Additionally, Tangerine has a calculator for estimating the amount you can borrow.

Who Can Open a Tangerine Mortgage Account?

Any Canadia in Tangerine mortgage-supported locations can open a Tangerine mortgage account. These locations are:

  • Ontario
  • British Columbia
  • Alberta
  • Manitoba
  • Quebec
  • Atlantic provinces and territories
  • Saskatchewan

However, being a resident of one of the above locations is not enough qualification for opening a Tangerine mortgage account. Here are other requirements:

  • At least 3 months of full-time employment or a history of at least 2-year self-employment.
  • Have no bankruptcy history.
  • A good credit score and history.

Tangerine Mortgage Pros and Cons

In this section of my Tangerine mortgage rates review, I explore both the good and ugly sides of Tangerine mortgage to help you make the best decision:

Pros

  • Annual lump sum payment increase (up to 25%).
  • Flexible lump sum prepayment opportunity (up to 25%).
  • 120-day rate holds with automatic rate drops if rates fall before closing.

Cons

  • More expensive to switch to other lenders.
  • No physical presence for one-on-one service.

Subsequently, you will have a better understanding of the above pros and cons.

What are Tangerine Mortgage Rates?

Obviously, Tangerine mortgage rates are quite low compared to what is available in the market.

Based on term and mortgage type, Tangerine has the following mortgage rates:

Term Mortgage Type Mortgage Rate
5 Year Variable Mortgage 1.45%
1 Year Fixed Mortgage 2.79%
2 Year Fixed Mortgage 1.78%
3 Year Fixed Mortgage 1.89%
4 Year Fixed Mortgage 2.04%
5 Year Fixed Mortgage 2.14%
7 Year Fixed Mortgage 2.64%
10 Year Fixed Mortgage 3.09%

 

Note: Tangerine mortgage rates are subject to change at any time.

Tangerine Bank Fixed-Rate Mortgages

By “locking in” a particular interest rate for the term, this type of mortgage rate decreases the likelihood of potential interest rate volatility.

This will give homeowners peace of mind. Little wonder it is very enticing for Canadian homebuyers.

Fixed interest rate guarantees up to 120 days prior to the closing date of a house, whether you are preparing for a new mortgage or an existing home.

Should the interest rate rise by that time, you are guaranteed the lower rate.

Tangerine Bank Variable-Rate Mortgages

The interest rate on this type of mortgage is fixed for a particular duration. However, rate shifts can make it fluctuate.

If the prime rate falls, large parts of your payment will be applied to clearing your principal. But if the prime rate rises, large parts of your payment will be applied to interest rates.

Consequently, for those predicting interest rates to decline in the coming year, this may be an excellent financial method.

If your variable rate mortgage no longer meets your needs, you can use a convertible mortgage to convert to a longer closed term.  This provides you all the flexibility and security you need.

What are Tangerine Mortgage Rates Payment Options?

Tangerine permits its customers to make weekly, biweekly, monthly, and semi-monthly mortgage payments.

Accordingly, it makes accelerated weekly and accelerated bi-weekly payments perfect for those who want to pay off their mortgages faster.

Tangerine Mortgage Prepayment Options

Making prepayments on your mortgage will help you pay it off faster and save you money in the process.

Therefore, Tangerine allows you to make annual prepayments of up to 25% against your mortgage principal.

For any payment date, you can raise your monthly mortgage payments by up to 25%. Once a year, you can make a lump-sum prepayment to increase your mortgage payment.

Moreover, Tangerine does not provide open term mortgages. But its favourable prepayment allowances render closed term mortgages an appealing choice for homeowners.

Tangerine Mortgage Rates: My 5-Star Rating

When rating Tangerine mortgage rates 4.7 out of 5-star rating, here are the features that I consider:

Feature Rating
Mortgage Rate *****
Support **** (4.2)
Flexible Payments **** (4.8)
Ease of Use **** (4.6)
Safety *****

 

Tangerine Bank performs admirably on the above features. But as you can see, there are minor areas of improvement.

Accessing Tangerine Mortgage Rates

As I noted earlier, Tangerine doesn’t have physical branches.

So to access the Tangerine mortgage rate, you need to apply online. This implies that there’s no barrier to where and when you can access the Tangerine mortgage rate.

Furthermore, Tangerine provides a Mortgage Account Manager to each customer for a seamless access experience.

Tangerine Mortgage Application Checklist

To qualify for the Tangerine mortgage rate, you must meet specific requirements.

So here is the comprehensive checklist of the requirements for the Tangerine mortgage rate:

  • Personal details.
  • Employment details.
  • Your asset details.
  • Details about your liabilities. (This includes loans and leases, lines of credit, credit cards, etc.).
  • Information about your income.
  • Mortgage information (duration, payment schedule, down payment, amortization period, required amount, etc.).
  • Property details.

How to Open a Tangerine Mortgage Account?

To apply for a Tangerine mortgage, you must first create a Tangerine customer account online and complete a mortgage application.

The above application checklist is all you need to open a Tangerine account.

To get started, visit the Tangerine Mortgage Rates page.

Tangerine Mortgage Account Manager

Once you apply for a Tangerine mortgage, a Mortgage Account Manager will be assigned to you.

The Mortgage Account Manager will be there to guide you all through the mortgage process.

Additionally, your account manager will assist you with the application process. He or she will also assist you with mortgage renewal or refinancing and home equity line of credit applications.

Tangerine Home Equity Line of Credit

A home equity line of credit gives you the opportunity to borrow additional funds at a low-interest rate by using your home equity.

Accordingly, Home equity lines of credit are helpful for major expenses like vehicle repairs or home renovations, which are out of the ordinary.

Therefore, you can borrow and repay your loan conveniently through the Tangerine home equity line of credit.

You’re only expected to make interest payments on the amount you borrowed on a monthly basis.

With the Tangerine home equity line of credit, the application is just once.

You can continue re-borrowing from your line of credit without having to worry about paperwork as long as you don’t go over your credit limit.

Keeping track of the balance of the home equity line of credit together with the minimum interest rates can be difficult at times.

In addition, Tangerine has a Fixed Payback Plan which makes tracking your home equity line of credit and minimum interest rate easier.

Furthermore, the plan allows you to make interest and principal payments on your line of credit automatically rather than manually.

Tangerine Mortgage Pre-approval

Before applying for a Tangerine mortgage, you can request a rate hold. A rate hold guarantees your interest rate for up to 30 days.

Accordingly, you must not submit a mortgage application to qualify for a rate hold. All you need to do is to set up your access PIN by creating a Tangerine client account.

But if fixed prices increase, you will get the initial rate on which you put a hold.

In the case of a variable rate rise, you are entitled to a spread between the variable rate you hold and the Tangerine prime rate.

However, you must bear in mind that holding a rate does not guarantee that you will be eligible for a Tangerine mortgage.

You can only be sure of your mortgage approval by applying for a mortgage pre-approval.

Also, Tangerine mortgage pre-approval requires you to fill an extensive mortgage application.

Furthermore, Tangerine can request personal and financial details from you during the application process, in addition to conducting a credit check.

Once your application is approved, you can be certain of how much money you can borrow.

Additionally, Tangerine mortgage pre-approval holds down the interest rate for 120 days.

How Tangerine Mortgage Compares

To provide an unbiased review of Tangerine mortgage rates, one must compare them with other mortgages out there.

Here’s a comparative overview of the fixed mortgage rates of Tangerine fixed mortgages rate vs TD Bank vs RBC vs Scotiabank fixed mortgages:

Mortgage Term Tangerine TD Bank RBC Scotiabank
One year 2.79% 2.79% 2.69% 2.79%
Two years 1.78% 2.94% 2.94% 2.89%
Three years 1.89% 3.49% 3.45% 3.49%
Four years 2.04% 3.74% 4.09% 3.89%
Five years 2.14% 4.59% 4.79% 4.79%

 

Note: The above figures are subject to change.

Tangerine vs TD vs RBC vs Scotiabank: Which to Choose?

The above figures are very clear! As you can see, these fixed mortgage providers have a single similarity and multiple differences.

Obviously, the only similarity is that they all (excluding RBC) have the same 1-year fixed mortgage rates of 2.79%.

On the other hand, these fixed mortgage providers have varying interest from 2-year to 5-year terms.

Comparably, RBC has the highest fixed mortgage rate, followed by Scotiabank, TD Bank and then Tangerine as the lowest.

In contrast to common assumptions, a mortgage provider with the highest interest rate is not always the best but the one with the lowest rate.

Therefore, when determining the best mortgage rate, your focus should be on one that reduces your total borrowing cost.

Subsequently, you should consider the features and conditions of the mortgage provider and ensure that they suit your requirements.

In this case, a Tangerine mortgage may be your suitable choice since it has relatively low rates with top-notch features and conditions.

Over to You

With the rapid increase of mortgage providers in Canada, it is important to draw your selection on a low-cost mortgage with friendly terms and conditions.

However, borrowing what you can’t be able to pay back as at when due is a license to ruin your long-term financial security.

But with the Tangerine low mortgage rates, you can be sure that you can pay back your mortgage within a given time without sacrificing your current lifestyle.

But to be on the safer side, I recommend you build an emergency fund before applying for any mortgage.

By doing so, you will be prepared for any unforeseen circumstances that may ruin your ability to pay back your mortgage in the future.

FAQs on Tangerine Mortgage Rates

How Much Can I Borrow?

The amount you can borrow from Tangerine mortgage depends on your down payment as follows:

Purchase Price Minimum Down Payment Required
$500,000 $25,000
$600,000 $35,000
$700,000 $45,000
$800,000 $55,000
$900,000 $65,000
$999,999 $75,000
$1,000,000 $200,000

To get a perfect range of how much you can borrow, use the Tangerine Mortgage Calculator.

What is a Tangerine Mortgage Calculator?

Tangerine Mortgage Calculator is a tool that helps you determine the actual amount you can borrow for your mortgage.

Therefore, the Tangerine Mortgage Calculator will ask you to provide the following information:

  • The purpose of the mortgage,
  • Annual family income before tax
  • Down payment
  • Monthly loan/credit card payments
  • Amortization in years
  • Annual property taxes
  • Monthly condo fees

Therefore, once you’ve provided the above information and click “Calculate,” …

Tangerine Mortgage Calculator would handle the rest and provide you with the actual amount you can borrow.

How to Renew Your Tangerine Mortgage?

Tangerine will contact you at the end of your mortgage term to discuss mortgage renewal options.

You may either choose a new mortgage term or reach out to Tangerine to discuss your options.

Moreover, during your mortgage renewal period, you can review eligible mortgage products from other financial institutions to make the best renewal decision.

Is Tangerine Good for Mortgage?

Obviously! If you compare Tangerine with the big banks, you will know that it has competitive mortgage rates. With such a competitive mortgage rate, you can save a lot in the long run.

Tangerine mortgage rates also come with unique perks that make them attractive to others.

Does Tangerine Do Mortgage Preapprovals?

Yes. Before applying for a Tangerine mortgage, you can apply for mortgage pre-approval, which retains the interest rate for 120 days.

Also, a Tangerine mortgage preapproval helps you know exactly how much you can borrow.

What is Tangerine Prime Rate?

Tangerine’s current prime rate is 2.45%. When the prime rate decreases, Tangerine will channel a large portion of your payment to your principal.

However, if the prime rate increases, Tangerine will channel a large part of your payment to interest rates.

Is Tangerine Interest Calculated Daily?

Yes. Tangerine calculates its interest rate daily. However, it makes monthly payments to Savings and Chequing Accounts.

Is Tangerine Owned by Scotiabank?

Yes. Scotiabank owns Tangerine. Scotiabank is one of the Big Five Banks in Canada, headquartered in Toronto, Ontario.

Is Tangerine Bank any Good?

Yes. Because Tangerine Bank is one of the best online banks in Canada. It is obvious to see why.

Tangerine has attractive interest rates, high-quality financial products and a guarantee of no fees.

Is Tangerine a Safe Bank?

Obviously, Tangerine is a safe bank. As a member of the Canada Deposit Insurance Corporation (CDIC)… your deposits on Tangerine Bank are insured up to $100,000.

Is Tangerine Better than TD?

Comparably, Tangerine is better than TD in terms of cost. But if you’re looking for physical bank features, TD might be what you need.

Besides that, Tangerine is ahead of TD Bank in all angles.

Is Tangerine Better than RBC?

Obviously, Tangerine is better than RBC in all angles.

Like TD Bank, RBC is only ahead of Tangerine in terms of physical branches. Besides that, Tangerine is your best choice.

Is Tangerine Covered by CDIC?

Yes, Tangerine is covered by the Canada Deposit Insurance Corporation (CDIC). This implies that your Tangerine deposits up to $100,000 are insured.

How Do I Link My Bank Account to Tangerine?

To link your bank account to Tangerine, follow the steps below:

  • Login to your Tangerine account.
  • Click “My info and options.”
  • Click “Links to external accounts.”
  • Put in the account details.
  • Click the “Confirm” button.
  • Read the instructions.
  • Type the amount that is in your non-Tangerine bank account.
  • Click the “Confirm” button.

Once you follow the above steps successfully, your bank account will be linked to Tangerine.

Finally, If you have more questions on Tangerine mortgage rates, kindly drop them in the comment section.

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